How do people afford nice things?

[Nocares]

Looking for advice or an explanation of some sort!

Me and my DP both earn a good wage and have no kids.

We both drive very old cars and just bought our forever house (doer upper) very cheaply due to the works.

I have 0 debt . We never get anything on credit/finance we just save up for everything.

Although our monthly outgoings are low and we have spare money to save and spend, I don't understand our quality of life compared to others.

So we need a new bathroom first in our renovations which will cost about 4K all inc. We would both like newish second hand cars too at some point. To get something reliable and decent your talking about 7k each.
A new kitchen would be 10K with discount including fitting.
That there alone is 28K

As we pay for everything in cash as we save, I just don't see how its possible to get those things in under a decade of us saving!

A lot of our friends drive nice cars (on finance), have new kitchens or other refurbs done on their house with average incomes.

Even if you were to put everything on credit, after your repayments on top of bills and mortgage you'd have no disposable income left for years until its paid off?

I would get that people did do that, but most people still go on holidays, take maternity leaves etc. So they must still also have disposable income after paying off new car finance, credit card, and doing home renovations?

I feel like maybe we're missing a trick?
I can't imagine every single person I know is in huge debt! Especially as a lot of people have recently bought new homes due to stamp duty. So must have good credit.

I just don't see how its possible for us to do what we want to do within a reasonable time frame without it taking us a decade whilst we also live frugally.

The everyday people we know also have average jobs and income so its not like were surrounded by wealthy people either!

Am I missing something?!

OP has:
£62k income plus bonuses
large pension contributions
zero debt
3 storey house
2 cars
0 children

Why do you choose to post about your financial woes on a parenting site? Genuine question.

Oh, this thread is really interesting - it's really made me think about the choice of smaller deposit and being able to do more work quickly versus larger deposit and only being able to do work quite slowly.

I wouldn't dream of buying cars outright because interest rates are so low. I have in the past but now think it's a waste of money, I'd rather keep the cash for other things. It's also useful to have an interest free credit card for items you might need but don't necessarily want to pay for all at once. I'd rather have savings than buy everything outright but you need to be prudent with this approach & make sure that you don't get sucked into expensive credit. Always be aware exactly what you will pay over the cost of any finance deals. It's not always bad to use credit but you need to think it through. Like others have said, there's no point wondering how others do it, you can only make sure you are using your own resources to the maximum benefit. Sometimes it just takes time to get to where you want to be.

You can buy second hand kitchens

You can buy cheaper new bathroom & kitchen goods from auctions

Plus Freecycle

There are ways

35k is a decent salary

Not in mumsnet...it's practically on the breadline on here!

"nice things"

You have a partner, property & cars

Some people don't have that

Be thankful

@RuralJuror ermm thats ignorant. Very ignorant.

How do you know I've not joined mumsnet for:
Forums about miscarriages
Forums about fertility
Forums about grief after losing a baby
Forums for support for ivf

Or just forums such as feminism and DIY?

You don't know. Mumsnet has many different sections for support. Should every person without a child start each thread by stating "i don't have children but I joined for help with xyz" before posting?

Its very rude and the 'why be on mumsnet if you don't have kids' has been done to death so look up those and please bore off.

Oh I do love a good thread when someone obviously quite comfortable financially loves a good moan about their finances!!

I was made redundant last year and have lost £5000 a year as my new job is a lot less money than my previous one and my partner has been on furlough for months out of the last year

Spare a thought for those trying to budget for essentials instead of being ridiculous when you should have kept more of your deposit back for urgent jobs and just paid a bit more mortgage every month! Surely that is just stating the obvious?!?!??

Absolutely Tiredmum. I'm sick of all the moaning here. Count your blessings.

@Nocares (Apt name) Your post is completely tactless and tone deaf in the current climate of job losses, furloughs etc RTFR

@RuralJuror
@Viviennemary

Absolutely!!!

We also have 2 kids to support and so I've been worrying about bigger stuff than how will I pay for a New kitchen or bathroom with £2k spare a month!!!!!

Some people just don't spare a thought for others in the current pandemic

Quote
We might all be in the same boat with covid but we are not all riding the same storm

I think you sound very sensible op, best of luck with everything.

An enormous number of people live with lots of debt. Don’t be fooled by all the shiny new cars, fancy kitchens etc. 20 years ago I remember talking to a woman I knew who had a very shiny life on the surface. She told me the very fancy car was leased, they always had a $10,000 (AUS) credit card debt running and could just afford the mortgage payments on their house in a desirable area. She got a job in a private school to get reduced fees.
Another friend added $80,000 to the mortgage to afford school fees.

First of all you can get your bathroom and kitchen done up for much less. Also because the interest rates are so low it could be worth shopping around for a good deal on your kitchen and bathroom and take out a bank loan to pay for it. Pay lump sums off and it will be gone in no time. Then do the same for the cars, one at a time.

Oh I do love a good thread when someone obviously quite comfortable financially loves a good moan about their finances!!

She's not moaning about her finances. She doesn't say she doesn't have very much money. She's asking a specific question about how people afford the luxuries, which is more of a budgeting question and it's totally relevant to ask.

Every time anyone asks a money question on mumsnet they get a roasting for not being grateful for what they have. It's bizarre, and this poster is not claiming poverty, she's asking something specific.

What about house insurance, car insurancex2, life insurance? Car maintenance? Breakdown cover? You seem to be underestimating your outgoings? Though I'm envious of your council tax- ours is £375 a month!

In 2 months you can buy your bathroom, 5 months a new kitchen. Not rocket science

If you want it all at once then combine your high savings with interest free credit

If you manage to stick with the 2k per month savings, within just over 2 years solid dedicating that money to your to do list and car upgrades you have done it.And thst would be ignoring any patristic or promotions that might help you.

A little more sacrifice and you are there.

Though I'm envious of your council tax- ours is £375 a month

For your council tax to be that high, it's very likely you're living in a large house in a good area.

At the risk of sounding like a Viz Top Tip, lower council tax bills are available to all by simply moving to a small house in a cheap area. Ours is £100 pm for a band A property, small 2 bed ex council house in a perfectly pleasant but less fashionable suburb.

For an old house, your council tax is likely to increase. You’re missing internet, TV licence. Phone contract for both of you is £29? We have rolling contracts, not paying for the phone, and that’s £25 each. Insurance for two cars, an old house and both your lives is £120 per month

It's very rare for anyone's council tax to increase more than the rate of inflation, and certainly not because a house is old.

If you're paying £25 for a sim only contract, it's very likely that's at least twice as much as you need to. We pay under £20 pm for two phone services.

We don't have paid life insurance, which is very cheap anyway, but our insurance bill for two cars and the house is about £70 pm, our total bills and food for around a grand are more or less the same as the OP, so they don't seem unrealistic to me.

On the matter of doing the house up, I'd look for interest free credit for big purchases like a kitchen, maybe a 0% spend credit card and aim to do the work over the next year or two as the spare income in this time should cover most of it.

We save about 4K a month & lived abroad in low tax countries earning lucrative salaries for a number of years.

Combination of high salaries & living a pretty frugal lifestyle. Most people we know would probably spend a lot more if they earned the combined salaries that we have.

We've bought, renovated, sold, bought, massive renovation, bought/knockdown rebuild and sold. Made money on each property along the way. Paid for things with bonuses, but also sacrificed by living short term in horrid accommodation, adhered to very very strict budgets and gone without in order to save deposits and fund our various projects. It hasn't been easy (and not sure I could do it again) but we are in a much better place financially now with two teenage children and a very nice house and lifestyle. I'm glad we made those sacrifices when we were younger to enable our life today.

Your utilities are going to increase. For an old house, your council tax is likely to increase. You’re missing internet, TV licence. Phone contract for both of you is £29? We have rolling contracts, not paying for the phone, and that’s £25 each. Insurance for two cars, an old house and both your lives is £120 per month? If these figures are correct then you’re pretty good at scoring a deal, so should have no issue getting these refurbishments for cheaper.

Who pays £25 for phone contracts with no phone, someone is getting ripped off.

Council tax does not change bands because the house is old and you improve it while living there, it will probably change if there is a new owner or if it get a new lease of more than 7 years, neither I suspect affects OP

Obviously if there was a countrywide review of council tax then it may change but that would affect anyone that had improved their house not just old houses.

Insurance of £120 a month seems high unless very young which would put car insurance up

Argh I wrote a long post and lost it.

Band C council tax on our 4 bed is £156

We have life cover @ £270,000 - cheaper houses mean you need less life insurance usually and perhaps take it out earlier in life? Ours was expensive when we were 21 and 25 taking it out, not so much now. Critical illness cover is £50,000 each. £74 pcm total.

Car insurance £35 a month albeit only one car. Includes breakdown cover.

Home and contents insurance is £180 annually, we don't include accidental damage or legal cover. We have legal cover with the union.

£1000 sounds fair enough for OP's outgoings especially with £700 buffer of spends for presents, takeaways and other bits and bobs.

Agree with everything said about 0% finance being q possibility. We bought a car on a 0% for 21 months credit card for example. Being too risk averse is financially foolish. Have a read of Money Saving Expert guides around debt.

Back to the question.
Many people in The Baby Boomer generation are in a position to be able to help their children financially . Giving their money away rather than leaving it to them in their wills .

@LovelyUserNames

I think the truth is that you have a low income.

How much is your joint income?

Saving just over £50 a week is not a lot of savings.

My DS who has bought a flat recently ( he's 30) saves £500 a month- one income.

When DH and I were both working, we could manage on his income and saved mine which was anything from £1500- £2k a month.
DH also had a bonus each year of around £20K which we put towards things for the home. Some people get a bonus of £250K just to put it in persepctive!

To answer your question, sadly you need to increase your earnings, or borrow from family if they can help and pay them back, not paying interest charges, or get a bank loan.

Showing off much?

Not everyone is as lucky as you

@LovelyUserNames

Am I missing something?!

Yes.

Financial understanding, it seems.

I'd look again at your maths around your £1K a month outgoings. Either you have a non-existent mortgage or you live off bread and water and don't pay your council tax!

I am mortgage-free but for years and years the mortgage alone was £800 a month and the council tax £250 a month.

Are you sure you've added it all up properly?

What an ignorant assumption, depending on the area this is very plausible.